On July 22, State Representative Anton Gunn highlighted a new analysis showing that 88 percent of small businesses in South Carolina will be eligible for new health care tax credits in 2010, thanks to a key provision of the federal health care law enacted earlier this year.

According to A Helping

Hand for Small Businesses,

a new report jointly authored by national health care consumer nonprofit Families USA and small business advocacy group Small Business Majority, approximately 53,000 South Carolina small businesses with fewer than 25 employees will qualify for the new tax credits, which will help pay for the cost of optional health care coverage for employees. The report also notes that 15,900 of those small businesses stand to qualify for the maximum credit amount of 35 percent.

“Finally small businesses are getting some help so they can spend less money on healthcare and invest more in growing their businesses,” said Rep. Gunn, who represents District 79 in Richland and Kershaw Counties.

Gunn also believes the tax credits will help grow job opportunities in South Carolina. “These tax credits are helping small businesses cover the cost of insurance for their employees, so that they can continue to create jobs that will stay here in South Carolina.”

More than 4 million small businesses nationwide— 83.7 percent of all small businesses in the United States—will be eligible for the credit this year. To qualify, a small business must have less than the equivalent of 25 full time workers, pay average annual wages below $50,000, and cover at least half of the cost of health care coverage for their workers.

The tax credit can cover up to 35 percent of the premiums. In 2014, that rate will increase to 50 percent. The Congressional Budget Office estimates the tax credit will save small businesses $40 billion by 2019.